"Today, all major assets, which is more than 80 percent of oil on the territory of Russia, is extracted from [oil] fields that are on the late stages of development and operation. They were opened before 1990… The fields' natural cycle certainly reduces output," Alekperov told reporters.
According to Alekperov, the industry needs new oil deposits to compensate for the decline in production. However, there is no way of making many of them operational in the short-term, he stressed.
The Vladimir Filanovsky oil field is located in the northern part of the Caspian Sea. It was discovered in 2005. Commercial drilling at the oil field is scheduled to begin at the end of 2015, according to a statement on LUKoil's website.
LUKoil is a global leader in the production and refining of crude oil resources. It is world's largest privately owned oil and gas company by proven oil reserves, and operates in over 40 countries.
